MULBERRY PROFITS FROM PRICE CUTS

THE turnaround at leather bag maker Mulberry is taking shape as profits soar.

Ditching expensive bags and concentrating on a £500 to £995 price range has won back customers and annual sales rose 8pc in shops open for more than a year.

Total sales in the year to March 31 reached £155.9m and profit of £6.2m was up from £1.9m in the previous year.

Chief executive Thierry Andretta, who joined last year, and creative director Johnny Coca have led the turnaround to improve product and its marketing. Sales suffered after a failed attempt to go more upmarket which priced out its core British shoppers.

Coca presented his first Mulberry London Fashion Week collection in February and Andretta said it was ‘well received’.

It is launching nine new bags this year including the Clifton, Chester and Maple, and has launched a new and improved version of its original Bayswater bag which is lighter in weight and fits a laptop. Coca’s small leather goods, including purses and wallets, have also been best sellers and a range with model Georgia May Jagger has sold well (pictured).

Bags made in Somerset now account for around half of its range and eventually it hopes to grow this. It has two factories in Somerset and Andretta said it may look at building a third.

Website sales have soared 19pc to £21.4m for the year, accounting for 14pc of group sales.

Its dividend was static at 5p a share while shares rose 1.2pc, or 12.5p at 1037.5p.